IMF Cuts Global Growth Forecast to 3.7% for 2018, 2019

Ade Hapsari Lestarini    •    09 Oktober 2018 12:58 WIB
global economy (en)
IMF Cuts Global Growth Forecast to 3.7% for 2018, 2019
Illustration (Photo:Medcom/Ade)

Bali: The International Monetary Fund (IMF) has decided to cut its forecast for global growth by 0.2 percent to 3.7 percent for 2018 and 2019.

"At the time of our last world economic outlook, the world economy's broad-based momentum led us to project a 3.9 percent growth for both this year and next. Considering developments since then, that number now appears over optimistic," IMF Chief Economist Maurice Obstfeld told reporters on Tuesday.

"Rather than rising, growth has plateaued at 3.7 percent," the IMF official said during the World Economic Outlook press briefing in Bali.

The Annual Meetings will take place in the holiday island of Bali for a week until October 14. The Indonesian government has recorced around 34 thousand registered participants representing various institutions such as governments, international organizations, media and civil society groups.

"There are clouds on the horizon. Growth has proven to be less balanced than we had hoped. Not only have some downside risks that the last we identified been realized, the likelihood of further negative shocks to our growth forecast has risen," he stated.

"Growth in the United States buoyed by aprocyclical fiscal package continues at a robust pace and is driving us interest rates higher. But US growth will decline once parts of its fiscal stimulus go into reverse. Notwithstanding the present demand momentum in the US, we have downgraded its 2019 growth forecast owing to the recently enacted tariffs on a wide range of imports from China and and China's retaliation," he explained.